The James Company is considering an investment with a cost today of $1,500,000 and which will produce the following net inflows:   Year 1   600,000 Year 2   300,000 Year 3   200,000 Year 4   400,000 Year 5   500,000   What is the Payback Period for the investment?

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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The James Company is considering an investment with a cost today of $1,500,000 and which will produce the following net inflows:

 

Year 1

 

600,000

Year 2

 

300,000

Year 3

 

200,000

Year 4

 

400,000

Year 5

 

500,000

 

What is the Payback Period for the investment?

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